ARIG reduces losses to $13.3 mln for first 3 quarters of 2002

Arab Insurance Group, one of the largest Arab-owned insurance and reinsurance companies in the Arab world, said provisions made to cover the effects of the deteriorating ARIG UK run-off, and additional provisions at CNIA reduced its losses to US $13.3 million in 2002.

  • E-Mail
By  Massoud Derhally Published  November 11, 2002

Arab Insurance Group (ARIG), one of the largest Arab-owned insurance and reinsurance companies in the Arab world, reported an underwriting profit of US $ 5.8 million for the first nine months of 2002, compared to an underwriting loss of US $48.5 million for the same period a year earlier, as a result of the group’s revised underwriting strategies.

The company said in a statement, despite the decline in business volumes from exiting the volatile aviation business, which formed a major business line, its total gross premium for the nine-month period was US$ 172.3 million, down slightly from US$ 187.4 million for the same period last year.

The company said provisions made to cover the effects of the deteriorating ARIG UK run-off, and the additional financial provisions at CNIA reduced its losses to US $13.3 million in 2002 from $51 million a year earlier.

“Despite the improvement in its performance, the Group, like the global insurance industry, continued to be impacted by the spill over effects of the disastrous events of 2001,” the company said in a statement.

ARIG made additional provisions of US$4.9 million for reinsurance recoveries from the failed aviation reinsurer, Taisei, and investment losses of US$4.2 million on certain long term investments effected in prior years.

“It is our responsibility to explain which part of our results are related to liabilities arising from years prior to the implementation of corrective strategies in 2000 that have to be serviced now, and results of recent years,” said Udo Krueger chief executive of ARIG. “There is a legal requirement to honour these liabilities from previous years as we move forward, and we have managed to reduce them dramatically.”

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code